RUST NEVER SLEEPS - UNDUE RISK IN MULTI-STOREY BUILDINGS

By Richard Maiden MNZIBS Registered Building Surveyor, BRANZ Accredited Adviser Corporate Representative for Prendos on the Australasian Corrosion Association

Money. Disputably, it makes the world go round. Indisputably, it is the major cause of builder/client disputes.

During the last few weeks, a number of contract disputes have been brought to our office for resolution. For example disputes over:

1. Non payment
2. Defective workmanship
3. Liquidated damages.

The resultant melee produces a fair degree of ill will and worst of all, the statement, “it’s a matter of principle”. When you hear these fateful words, you know all rational thought is lost.

Contracts Protect

Contracts are there to protect the rights of both builder and client. They are agreements about the promise to provide each other with services or products, in exchange for money.

Building is a complex science. A vast number of diverse people and organisations contribute to the final product. Each of these participants has their own views about how and when a project should be tackled. This situation gives rise to a myriad of different priorities and opinions.

In short:

The client and their advisers want a building that performs its function and is built within budget and on time.

The builder and their sub-contractors want to construct a building with the least problems for maximum profit.

During the building process, there are always items that emerge and vary the contract. As these details change, it leaves room for each party to interpret the terms of the contract in their own way. By and large, the contract between builder and client balances the competing demands of budget and profit, keeping both parties on the straight and narrow.

Avoiding Disputes

It is possible to take steps to try and avoid contractual disputes. For example, both builder and client should take steps to understand the principles and obligations of the contract they propose to enter. If you have any doubt, or feel that any items may not have been disclosed, get the contract and any conditions checked by legal and construction professionals – before you sign.

In tendering situations, when time is not on your side, builders sometimes neglect to check contract conditions. It is dangerous to assume that because it is a “standard contract”, it must be OK. Beware! Getting the contract checked will save time and money in the long term.

If both parties regard the building contract as a set of rules by which they are bound and protected, and if each party takes the initiative to understand and abide by those rules, the building environment will be a far better place.

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